PE Surge Fuels Housing Growth, Affordability Gaps Remain
Real Estate

PE Surge Fuels Housing Growth, Affordability Gaps Remain

India’s housing sector is booming as private equity (PE) giants like Blackstone and Warburg Pincus invest in cities such as Pune, Mumbai, Bengaluru, and Chennai. Residential sales across top seven cities rose thirty-six per cent to 3,79,095 units in FY23 from 2,37,540 in 2021, per Global Property Guide.
The market value jumped from $200 billion in 2021 to $482 billion in 2024. Forecasts show it could reach $1,184 billion by 2033, with residential assets making up nearly seventy-nine per cent.
In Q1 2025, PE funding in housing rose thirty-five per cent to $748 million, aided by a rate cut to six per cent. Key deals include Rs 18 billion in Kolte-Patil and Rs 46.3 billion for Shriram Housing.
Yet home prices rose seven per cent in 2023, with Mumbai’s price-to-income ratio at 9.5 to one—far above the global norm. India faces a shortage of ten million homes, with demand for twenty-five million by 2030.
Growth continues, but so do concerns over long-term affordability and access. 

India’s housing sector is booming as private equity (PE) giants like Blackstone and Warburg Pincus invest in cities such as Pune, Mumbai, Bengaluru, and Chennai. Residential sales across top seven cities rose thirty-six per cent to 3,79,095 units in FY23 from 2,37,540 in 2021, per Global Property Guide.The market value jumped from $200 billion in 2021 to $482 billion in 2024. Forecasts show it could reach $1,184 billion by 2033, with residential assets making up nearly seventy-nine per cent.In Q1 2025, PE funding in housing rose thirty-five per cent to $748 million, aided by a rate cut to six per cent. Key deals include Rs 18 billion in Kolte-Patil and Rs 46.3 billion for Shriram Housing.Yet home prices rose seven per cent in 2023, with Mumbai’s price-to-income ratio at 9.5 to one—far above the global norm. India faces a shortage of ten million homes, with demand for twenty-five million by 2030.Growth continues, but so do concerns over long-term affordability and access. 

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